In a joint process, Sylvia's Styles produces precut fabrics for three products: dresses, jackets, and blouses. Joint cost is allocated on the basis of relative sales value at split-off. The company can choose to process each of the products further rather than sell the fabric at split-off. Information related to these products follows.

a. What amount of joint cost should be allocated to jackets and blouses?
b. What are the sales values at the split-off point for dresses and jackets?
c. Should any of the products be processed beyond the split-off point? Show computations.
d. If 4,000 jackets are processed further and sold at the regular selling price, what is the gross profit on thesale?

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Dresses Jackets Blouses Total 6,000 32000 ?$360,000 7 $80,000 $600,000 Additional costs of processing furthe 00 $20,000 $78000 124,000 $300,000 $268,000 $210000 $778,000 Number of units produced Joint cost allocated Sales values at split-off point 10,000 $174,000 16,000 Sales values after all processing